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Purchase of Production Houses in Texas and Arizona
EPIC entered into a Residential Rental Purchase
Agreement (rental purchase agreement), dated September 16,
1983, under which it agreed to purchase 142 residential
properties from U.S. Home Corp. (U.S. Home) for an
aggregate purchase price of $8,767,850. The location and
purchase price of each property is set forth in exhibit A
to the rental purchase agreement.
As a condition to the purchaser's obligation under
the rental purchase agreement, U.S. Home agreed to pay to
EPIC 6.8 percent of the purchase price of each property on
the closing date. The rental purchase agreement provides
for this payment in the following language:
On the Closing Date, Seller shall pay to
Equity Programs Investment Corporation a sum
equal to six and eight-tenths (6.8%) of the
Purchase Price of the Properties, and the
execution of this Agreement by Seller shall
constitute an irrevocable assignment to Equity
Programs Investment Corporation from the sale
proceeds of a sum sufficient to make the payment
due under this Subparagraph 4.6.
We refer to this amount as the builder fee.
The rental purchase agreement also requires U.S. Home
to pay to the purchaser 3 months' rent for each property
under certain conditions. That provision states as
follows:
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